Use the following information to solve the Questions 1, 2, and 3 below: The treasurer of Simmons...

Use the following information to solve the Questions 1, 2, and 3 below: The treasurer of Simmons Corporation, a newly formed software company, is trying to ascertain Simmons's cash flows for the next three months. Expected sales are: ---Expected Sales--- January: $200 February: $220 March: $300 50% of sales are made for cash. Simmons expects to receive 25% in the month following the sale and 20% in the second month following the sale. The remaining 5% are expected to be un-collectible. Gross margin is 20%, and purchases are made one month prior to sale. Purchases are paid one month after received. 1. The cash outflows in March from sales will be: A) $240 B) $220 C) $200 D) $176 2.) recorded bad debt expense for march should be: A) $12.50 B) $11.00 C) $10.00 D) None of the above

Jul 22 2015 09:30 AM

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James C
answered on July 22, 2015

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Use the following information to solve the Questions 1, 2, and 3 below: The treasurer of Simmons Corporation, a newly formed software company, is trying to ascertain Simmons's cash flows for the next three months. Expected sales are: ---Expected Sales--- January: $200 February: $220 March: $300 50% of sales are made for cash. Simmons expects to receive 25% in the month following the sale and 20% in the second month following the sale. The remaining 5% are expected to...

be un-collectible. Gross margin is 20%, and purchases are made one month prior to sale. Purchases are paid one month after received. 1. The cash outflows in March from sales will be: A) $240 B) $220 C) $200 D) $176 2.) recorded bad debt expense for march should be: A) $12.50 B) $11.00 C) $10.00 D) None of the above

in the quarter after sale ---------60% ( Bad debts are negligible and can be ignored) Cash disbursements for raw materials (all purchases are on account): Cash paid in the quarter of purchase----70% Cash paid in the quarter after purchase -----30% Desired quarterly ending Raw materials...

paid $ 20 ,000 cash for parts for new computers that it planned to make during the next few months . 3 . The company rented office space for the month for $350 cash . 4. The company hired and paid employees for work done during the month for a total of $ 1 ,500. 5 . The company sold

,000. 3 . Wages: January $30,000 and February $40,000. Wages are paid in the month they are incurred. 4. Administrative expenses: January $21,000 and February $24,000. These costs include depreciation of $ 1,000 per month . All other costs are paid as incurred. 5 . Selling expenses: January $15

Garcia Co. owns equipment that cost $82,400, with accumulated depreciation of $43,600. Garcia sells the equipment for cash.
Record the sale of the equipment under the following three separate cases assuming Garcia sells the equipment for (1) $51,20
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